It's been a brutal week of cuts – but how the axe has fallen shows the new leadership is diagnosing real problems, even if the solutions remain questionable. When Asha Sharma took over Xbox, the initial positivity has shifted as hard decisions are being made.
When Asha Sharma took over Xbox, the initial positivity has shifted as hard decisions are being made. Recently, Xbox cut 1,600 jobs with more to follow, impacting 20% of the organization. Internal studios like Compulsion, Double Fine, Ninja Theory, Undead Labs, and Arkane are either being sold or spun off. Remaining studios are also facing significant staff reductions.
Sharma faces conflicting priorities of reviving the stumbling Xbox business while controlling spending. The recent $20 billion investment has not yielded growth, leading to the current restructuring efforts. However, cutting 3,200 jobs may not be enough to address the financial challenges faced by the division.
The move to shrink the studio network is seen as a cost-saving measure rather than addressing core platform issues. This restructuring is partly performative, showcasing accountability for past strategic missteps. The aim is also to improve Xbox's first-party pipeline management, which has been criticized for weak development processes and product priorities.
